U.S. stocks tried to quietly rally despite the slump that continues in China. The Shanghai Composite declined another 2.1 percent on news that activity in the China’s factory sector fell to its lowest level in six years.
European markets flipped back and forth before deciding to stay in positive territory. There is a great deal of focus on Germany and concerns about the effect of the Volkswagen scandal. One in six jobs in Germany depend on the automobile industry.
U.S. stocks looked like they were trying to recover from Tuesday’s rout, but the early gains gave way to losses, with the S&P 500 losing 2 points to trade near 1,940, the Dow Jones industrial average decreasing by 32 points to 16,297 and the Nasdaq down 1 point to 4,755. Trading is expected to be light as the Jewish holiday Yom Kippur is celebrated.
The Finish Line athletic shoe chain received an upgrade to outperform from market perform at FBR Capital Markets. The chain was given a $30 target price and is currently trading near $25.50, moving up 3 percent in early trading. The analyst cited a partnership with Macy’s and improved interest in running as reasons that the company would grow in the near-term. Finish Line has set up exclusive shops within Macy’s stores.
Moody’s gave Coty Inc. a corporate bond rating of Ba1, which, according to Investopedia, is generally one of the lowest investment-grade ratings. Moody’s said the company could be upgraded if Coty sustains solid organic growth. Moody’s noted the rating outlook is stable. Coty stock is up 31 percent year-to-date, but has dropped 13 percent since the company said it would acquire most of P&G’s beauty brands. This morning, Coty moved higher by another 1 percent to $27.50.
Neiman Marcus reported fourth-quarter results after the market closed on Tuesday. Net losses for the quarter shrank to $32.9 million from $42.1 million a year ago. Sales for the three months ending August 1 rose 4.9 percent to $1.17 billion from $1.11 billion as comparable-store sales gained 1.9 percent. Neiman’s filed to go public in August, but has not made any additional moves since the filing.